tv CNN Newsroom CNN February 12, 2011 2:00pm-3:00pm EST
>> thanks for joining the conversation on "your money". ali will be back next weekend. have a great weekend, everybody! plans in this country for a radically new housing mash ket without fannie or freddie, find out what it could mean for your mortgage? the federal government and arizona do battle over border security. the state's latest legal problem. at 4:00, a changing of the guard at the most prominent african-american dance company in the world. you are the a"cnn newsroom"
where the news unfolds live. i'm fredricka whitfield. hundreds of egyptians refuse to live tahrir square. they are paying tribute to those who died in the revolution, setting up a monument in the middle of the square. more change for the region. the palestinian authority announces it will hold elections come september. the chief negotiator has quit. an investigation shows sensitive documents leaked to al jazeera television came from his office. protests are spreading in algeria. opposition groups gathered in the central square demanding jobs and democratic change. they clashed with police who detained about 100 demonstrators. a day after the historic ouster of egyptian president,
hosni hosni mubarak, they are now in charge. we are joined from cairo with a bird's eye view of things. >> reporter: over my shoulder, you can see the lights from tahrir square behind me, one could say that it is all over by the shouting. there is plenty of shouting taking place. it is not hundreds of people in the square but tens of thousands. as the sun went down a couple hours ago, all those citizens in cairo have taken to their beds after a night of celebration are mar marriaged again. you can hear sound from the river nile embracing freedom. there are questions. some prodemocracy demonstrators saying they will continue to demonstrate until all their demands are met, not comfortable
or confident that the egyptian military will steer through to democracy. the military is communicating and saying they would safeguard the interest of the people and try and steer the country towards free and fair elections. it said that egypt would honor its international agreement and that specifically will mean good news for israel. of course, because of the peace treat from camp david of 1979. >> finoloa sweeney, thanks so much. protesters in london are reaektir reacting in london. demonstrators in tra fall gar square shouted.
in washington, egyptian-americans are holding a celebration rally of another sort. they have seen demonstrations just about every weekend in washington for about three weeks. >> reporter: exactly, fredricka. this is our third week here in front of the egyptian embassy in washington, d.c. it is a big street party, you can see everybody smiling, having fun, dancing, waving the egyptian flag and holding signs saying that egypt inspires the world. one of the main organizers is with me right now. you just have a totally different look on your face, because of the news that happened. where did you hear about it? where were you? what went through your mind? >> i was in my office listening to it. i honestly didn't believe it. i jumped from my chair and almost broke the office door. i was ecstatic, hysterical.
i am 37 years old. >> sorry about that. we lost that signal out of washington, d.c. if we get another signal, we will try to restore that live shot with sandra endo. will the u.s. state department have to change its approach or dialogue with egypt or other countries in the region? let's go to elise labot. who does the u.s. think or hope it may be dealing with directly as it pertains to egypt? >> right now, fred, that's the big request he. they don't know what the pecking order is in the egyptian military supreme council. they know the head of the armed forces field marshall tantawi. they don't know who will be doing what or who the pecking order is. that's what they are trying to clarify. communications with the egyptians a little clogged right now. the state department is trying
to get all their ducks in a row with allies in the region, trying to call out foreign ministers an sending top diplomate, bill burns to the region, to jordan. they want to get more information from the egyptians to see what they know but also maybe they could get some information from some of the allies. right now, it is really a game of wait and see but also trying to do the intelligence gathering of what everybody knows. >> how comforted is the u.s. state department or the u.s. general feel that egypt has at least said it will honor the international agreement? >> they say the biggest impediment of president mubarak stepping down is the best sign so far. they are going to be looking for the military to take these steps. they have put out these statements guaranteeing the process. they are going to be looking for changes in the constitution, lifting the emergency law, opening up a political dialogue
that these protesters and opposition groups and the u.s. is going to have to stay at them to make sure they do this. the u.s. said they will. that could be a lever as well. >> would the usb having direct dialogue with vice president suleman? >> right now, no direct dialogue with him. they don't know what authorities he has. you remember this is an extra constitutional move that the military did. so now vice president suleiman doesn't have any powers. that's one question they are hoping to answer. they know omar suleiman very well. it is someone they know and trust. the military has said this government that was in place is going to be a care taker government. they know some of the people in that government. that's what they are waiting to
see what his role is. >> elise labbott, cnn's state department producer, thanks so much coming from washington. appreciate that. >> sure. there has been reaction in many parts of the world, london, washington, and via ireports. this comes to us from maria miranda in miami, florida. she and her ten-month-old daughter watched the celebration on television. her husband was in cairo's tahrir square. as soon as she new he was stepping down, she put her daughter in a t-shirt that says, i love my egyptian dad and sn snapped this photo. >> this ireporter captured the sound saying the atmosphere is amazing. you cannot tell what social class everyone is from.
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to buy homes. yesterday, they laid out their plan to remake the mortgage market, a big part reducing the government's role in housing finance by winding down fannie mae and freddie mac. timothy dpit ner talked about mistakes made in the mortgage system. >> it is the case that the u.s. government provided too much support for housing. too strong incentives for investment in housing. we just took that too far. alongside that basic set of mistakes in the incentives we created, we allowed our financial system to take on too much leverage. we allowed a huge amount of basic mortgage business to shift where there was no regulation oversight. we allowed the market to build up really terrible incentives around underwriting securitizaton. we allowed underwriting centers
to erode dramatically. those things are avoidable mistakes. >> so the obama administration would like to see the private market step in to take up the slack if fannie and freddie were to go away. joining us to talk about this is a nationally sin dictated columnist who specializes in real estate. >> nice to be back. >> the majority of home mortgages are freddie and fannie based. how alarming is this to you that they may potentially go away and it would be up to banks? >> well, i think that you have to understand that we are talking about ten trillion dollars, nearly the size of our budget in the u.s. government fo for a whole year. i was amazed to hear tim
geithner talk about all these mistakes. he is right on all of those counts. when you start to unwind that, it is very alarming to anybody who is a realtor, mortgage lender, new home lender. they are going to be scared. >> how about those who want to own a home or those who have a home. let's split it up on how it affects the current homeowner. >> if you own a home now, i just financed to a 15-year mortgage back in november. i am not going to worry about my mortgage for the next 15 years. it is going to be fine. people who are going into the housing market who are going to be buying a home, not this year but maybe next year, once this whole process starts to kick in, they are going to see higher rates of insurance, required to put 10, 15%, 20% down. i don't think we will see the 3% down loans or zero percent loans for sure.
>> i thought the 10% went away a long time ago. >> nope, nope, they are back. it is very interesting. the mortgage market is getting in there. the real concern, i think, as somebody who watches this market and has done so for a couple of decades is that the idea you are going to have the four big banks, bank of america, chase, wells fargo, citi, who have the capitalization and the muscle to do something here, you are going to have them go end to end in the process. you have to watch what kind of regulation will be on these banks and what kind of insurance people are going to have to pay and how it is all going to work out. there are a million details and all could be very scary for people. >> those banks you mentioned, bank of america, chase, citi bank, haven't they been the supplemental lenders if freddie and fannie were taking care of the majority of the stakes. why should anyone feel like they have the capacity to handle the majority of home loans if freddie and fanny were to go away? >> it is a great question.
they perform very different functions. right now, fanny, freddie and fha account for 97% of all the loans that are done out there, 97%. that's it. just government-backed. it is very terrifying. these big banks have a lot of money, some of which the government put into them. but they also seem to have some processes now. you have to be very careful that they don't just kind of become so enormous and so all-encompassing that they are impossible to regulate. we watched how the too big to fail thing worked during the last big great recession. iag was deemed too big to fail and it cost the government a whole lot of money to bail them out. >> thanks for your insight. good to see you. >> nice to see you, thanks. oakland california has one of the highest dropout rates in the state but one woman is trying to change that. she opened her card and pocket book and helped send a generation of kids to college.
dan simon reports on what matters. >> read number two and tell me which is the correct answer. >> reporter: these third graders in oakland may not know what they want to be when they grow up but thanks to a woman they call mama brown, they will have a better chance of making their dreams come true. >> does everybody have "b"? >> yes. >> reporter: for 23 years, or raleigh brown has helped students by paying for their college education. >> if we didn't have mama brown, we couldn't be able to go to college. >> reporter: inspired by a girl she saw out of school and on the street, she made a promise in 1987 to an entire first grade class. >> reporter: you said i want to help kids go to college. >> right. >> reporter: where did that come from? >> it's one thing you can give a child that no one can give away. i don't have $1 million but i could give it to a child today
and they could be broke tomorrow. education is one of the things that will set you free. >> reporter: brown was making just $45,000 a year as a real estate agent when she made that pledge. she managed to scrimp and save $10,000 a year for 12 years. >> reporter: this is the school where she adopted that original first grade class, brookfield elementary. of the 23 students, a remarkable 19 of them went to college. brown's mission to help children get an ed okaying was just beginning. she says she now hands out 20 scholarships every three years for the ora lee brown donation. >> i had an opportunity to make something out of myself. it makes me real thankful she is actually doing this for not only me but all the kids that doesn't have this type of opportunity. >> reporter: julias received a
scholarship in middle school and now he is a sophomore with plans to become a doctor. >> having the scholarship means i have a place here in berkley and i don't have to worry about having to work a part-time or full-time job. i can prepare for the future. >> reporter: he is one of more than 60 students she has sent to college. >> give a child an opportunity no matter where he or she come from. they will succeed. >> reporter: dan simon, cnn, oakland, california. in a time when african-americans were called colored, the so-called green book was amos the-have for black travelers. what could have been so important in those pages. we'll find out. [ female announcer ] enjoy a complete seafood dinner for two for just $29.99 at red lobster.
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green remembers it like yesterday. >> i as a teenager thought desegregating schools in little rock was important. >> reporter: glean was one of the little rock nine, a group of african-american students that enrolled in high school in 1957. while green was making history in the schools it -- >> it was one of those unknown survival tools for black people that had to move around the country. i was a teenager so i knew that the green book was a necessity for us to have a place to stay. >> a place to stay, a place to eat, even a car repair shop that would be friendly to blacks all
pulled together in this directory. decades later he had forgotten about the precious resource until a recent conversation with calvin ramsey, a playwright, an author. >> he mentioned he was doing a play around this book. as he described it, i remembered that i had a personal experience with the green book. my aunt and mother mapping out a program for us to travel from little rock to hampton, virginia, for my sister's graduation. >> personal tales like this inspired the playwright and he learned about the travel gheit's 1936 genesis temperature. >> for victor green, an african-american gentlemen who has traveled himself and had hardships on the road, embarrassing situations that he p didn't want to see his people continue to have. he said, if i can do something
about this, i will. >> reporter: the idea took off. year after year, the green book grew, providing resources for all 50 states. >> everything from lodging to restaurants, to beauty shops, to barber shops, mechanic shops, later on, doctor's offices, dentists, pretty much anything you need on the open road. >> reporter:s athe book gained popularity, it also picked up a major sponsor. >> once standard oil got involved, they hired professional market tears and set up an office in new york and hired men with training and then they started training men how to run their own service stations and from there, they could sell more green books. >> today, ramsey takes hits children's book to elementary schools bringing old tales to a new audience and picking up on a green that the cre a ter of the green book held dearly.
>> travel, exposure, knowledge, all of it is fatal to prejudice. it requires people to think broader to this idea about universality that begins to see people as people. >> reporter: big lessons from the little guy that history almost forgot. the stage play inspired by the green book tells the story of a holocaust survivor spending the night with a black family after being refused service to stay at a hotel. arab nation in the air, this is yemen today. you know what the question is? where next? for the ultra-wealthy. it's a necessity. find investments with e-trade's top 5 lists. quickly. easily. use pre-defined screeners and insightful trading ideas to dig deeper. work smarter. not harder.
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will what happened in egypt stay in egypt. protesters are hitting the street in another middle eastern nation. a look at top stories. house republicans have unveiled a spending bill that calls for massive cuts to many government programs and agencies, among the proposed cuts, slashes the environmental protection agency by 30%, $3 billion, cutting more than $1 billion from the head start education program and reducing the money available to food safety and inspections by $88 million. oscar-winning actress, elizabeth taylor is being
treated at a los angeles hospital for symptoms caused by congestive heart failure. her representative says the 78-year-old star checked in for what's being called an ongoing condition. crowds are still in cairo's tahrir square after hosni mubarak stepped down as president of egypt. the scene, one of celebration. the country is now ruled by a caretaker government controlled by the military. many are vowing to remain in tahir square until civilian rule is implemented. long before hosni mubarak stepped down as president of egypt, a similar anti-government movement began swelling in yemen. the two countries are connected on the map but crowds gathered in yemen this weekend and want the same outcome as in egypt. if our shot is still established, we will try to get there.
okay. our mohammed jamjoom is there. what's taking place? >> earlier, there were brief clashes between two rival factions. they have to disperse the crowds. thousands of people are on the streets. on the anti-government side, you have people that are there and to support what's going on in egypt. they are happy that mubarak had stepped down. as it happened usually in circumstances here in yemen, when an anti-government expressing solidarity for the egyptians or the tunisians, it quickly turns to anger toward the current regime. thousands of the protesters were saying they wanted the president to step down, that he needed to go, there needed to be regime change. on the pro-government platform, there were people there
expressing their affection for the president. they said it was the anti-government camp that were causing security demonstrations here. >> thanks so much, mohammed. many long-time watchers have felt like this day was going to come and they are not that surprised about what's happened in egypt. the revolution there is being painted as the beginning of a movement that will continue in the wider arab world. my next guest is definitely one who believes in that. robert mally just co-wrote a washington post article that states simply, the arab world is dead. you have to explain that one? >> what i'm saying is that what the people in egypt and elsewhere are rebelling against is not just material conditions and the lack of democracy. it is the fact that arab states have been basically mute, basically absent from the regional diplomacy from anything
that they say mattered to them, the future of palestinians and the future of iran and iraq and sudan. on issue after issue, the arab world has been dead. what we are seeing on the streets of cairo is a first act of trying to reclaim their own destiny, their place in the arab world and be able to make their own decisions. >> what do you blame or credit for any of these regimes that you blame for being complacent and not being policy driven? >> well, i'm not the one who is doing the blaming. the people are. think again. this goes back to the question of whether their state represents something. is it a proud act or even if they disagree with the policies, is it a proud actor or an actor that in their eyes has done this bargain in which they trade fundamental foreign policy decisions in exchange for financial military diplomatic support from the u.s. and the west in general? that's been a bad bargain both
for those countries and the u.s., because it is not sustainable. we are hearing people say we have to be in charge of our own policies. it may mean being more assertive and in our own policies. we disagree with the united states and europe. to be able to do it, not necessarily in a confrontational way but in a way more resident with national and popular aspirations. >> is that the assertion you think people in egypt were saying, mubarak was infeblth tif ineffective, passive, not doing more to be forward thinking not just for egypt but the entire middle east? >> i think it is many things. they were angry about material conditions, poverty, unemployment, unequality but i think what has made the difference, not just in egypt, but it is the feeling that the state no longer stands for anything. it doesn't stand for the wrong things but not for anything.
if you hear what they are saying and what other arabs are saying, they lack dignity because they feel their countries are not respected anymore. it has always been the heart of the arab nation, the heart of the third world. they have lost that. you can't understand why this time is different if you don't keep that in mind. what's so important to the psychology of people there is that their proud country was no more. >> many of the other neighbors, arab nations, spoke out when there was talk of a potential transition of power. now, it is actually happened where the president has stepped down from egypt. saudi arabia, jordan, syria, yemen, where are their governments now in terms of taking the lead, being a little more nervous as a result of what took place in egypt or feeling more inspired to take a new direction? >> it is interesting. there will be two levels of contagion that are taking place. people are inspired at the
street level not just because they see people protesting but that the protest succeeded that they could be more resilient than the regimes in other -- they are not as strong as they are. one of the things that kept these regimes in power, the basic strength, is that the people are not aware of their weakness. they are all weak. there is the contagion effect at the level of the regimes which are going to learn from the mistakes of tunisia and egypt. like two chest players where both sides are learning the moves of their opponents. we have only seen two rounds and many others that will be playing out simultaneously where they are going to try to learn techniques and peaceful challenge. the regimes are going to try to learn that. we have seen it already with a series of announcements. the yemeni who said he is not going to run again. the iraqi said he wouldn't be
prime minister for a third time. who is going to adopt more quickly to the other is going to be far of the unfolding story. >> robert malley, thanks so much for your time and insight. >> thank you. imam, just one word says it all. a fashion icon and wildly successful as a business woman as well. she is speaking out about the uprising in egypt and reveals why she cares so deeply for that country face to face. the conversation with iman after this. and try...and try. i heard eating whole grain oats can help lower my cholesterol. it's gonna be tough...so tough. my wife and i want to lower our cholesterol, but finding healthy food that tastes good is torturous. your father is suffering. [ male announcer ] honey nut cheerios tastes great and can help lower cholesterol. bee happy. bee healthy.
this valentine's day weekend is bringing some wonderful weather. jacqui jeras loves it. are you in love with the weather? >> i haven't seen outside in a while. i will take your word for it. >> it is so nice. it is just going to get better. we have a major shift in the weather pattern. be happy for the majority out there. our jetstream has done a complete change. we have it across parts of the west that allows warmer air to develop. we have a little bit of trough hanging here across the great lakes of the northeast so you guys aren't so great. the good news is that this whole shift and ridge, we think, is going to move eastward throughout the week.
pretty much everybody is going to get in on the gradual warming. we are going to see temperatures as much as 20 degrees or so. one other consequence of this, having an active jetstream across the northern tier of the cun tri, that's where the tracks of the storm systems are. those of you in seattle an the pacific northwest, you are going to have a rainy, active week. we have a storm that's passing across the northern tier that's bringing in strong wind gusts. we had an 80-mile-an-hour wind gust in the peaks of montana. we could see more continuing. we will show you where the rain is, a limited area along i-5. expect that wet pattern and staying cool and with the cold air across the northeast, we have lake effect snow. for the most part, you should be able to count the number of inches on one hand. everybody else will pretty much have lots of sunshine. overall, a really nice weekend. great picture and a great opportunity for an ireport pb
this is from john keyho, he said he has never seen anything like this, a big boat and several tug boats breaking up the ice and allows the larger boat to be able to move along the river. kind of cool stuff. >> a fascinating shot the menomonee river, between menomonee and marinette, wisconsin. i was hoping you would tell me how to pronounce it. thanks so much. how to succeed in hollywood if you are politically conservative. that's what they are talking about at cpac in washington. a live report after this.
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it's a virtual who's who of political conservatives at the annual cpac meeting in washington. cnn he's senior political editor, mark preston is there. what is happening? >> hey, fred, how are you a lot of people are talking about the 12 potential presidential candidates that took the stage over the last three days to talk about their vision for america. it wasn't just what was happening mind me on this stanl that people are here at this conservative gathering. it is what the meetings were
taking place in rooms all across this hotel here in washington, d.c. one of those meetings was about hollywood and how conservatives can play a role in hollywood. how do they counter what they say is a liberal bet. pat boone, the singer/songwriter left the stage. he talked about how difficult it was for him being in hollywood. that was the old generation. you need to move on and stop wiping. hone your kraft and talk about your message. in fact, fred, let's take a look at what his editor of big hollywood, john notle said, hone your kraft, do good at your skill and then you can deal with your world view. make the project that you want to make. conservatives will say, over and over again, that hollywood is too liberal. i had an opportunity to talk
about victoria jackson, a "saturday night live" fan. she said that hollywood doesn't just not like christians, they don't like god. so there is this view among some conservatives, certainly social conservatives, people such as victoria jackson, that there isn't a place in hollywood. they are battling as best as they can. >> strong sentiments coming out of the cpac meeting. mark preston, thanks so much. later on, straw poll, right? >> yes. straw poll in the 5:00 hour, we will be back and have the results of the cpac straw poll, very much a bragging rights results. a lot of the attention on it. the race for the 2012 republican nomination. about a dozen presidential candidates here talking trying to woo some of these conservatives behind me. >> kicking into high gear in just weeks, maybe even months opinion thanks so much.
maybe even days actually. mark preston, thanks so much. appreciate that. your next political update in an hour? for the latest political news, you know exactly where to go. cnn politics.com. > swimming a mile in the hudson river, no easy feat. these cnn viewers are up for the challenge. see what else they are planning to do. [ male announcer ] succeeding in today's market requires more than wishful thinking. it requires determination and decisive action. go to e-trade and get unbiased analyst ratings and 24/7 help from award-winning customer support
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for the next six months, our chief medical correspondent with part of our 2011 fit nation challenge that kicked off in atlanta. let's talk a little bit about the sport of triathlon. you do need to kind of find ways to enjoy this program and enjoy this world we are going to introduce you to. we are going to introduce it to you in the highest class fashion possible. >> i'm mina, nice to meet you. >> nice to meet you. >> hi, i'm stacia.
>> nice to meet you. >> nice to meet you. >> we are back and we have something very special. our 2011 cnn triathlon challenge. >> the new york city triathlon is basically a weekend of fun stuff going on. >> here we go. the swim is going to be fast, 20 to 30 minutes top. that's all you have to do. if you are not a strong swimmer, get your endurance up. >> nice and easy freestyle. no pressure. this is warmup.
>> the reason you run is because you are in a race. so you cannot walk. you cannot walk. >> you are going to ride up the whole west side of manhattan. you will be on the west side highway. so you will be looking over the hudson river. >> now, when you are up here, there is no push down on the pedal. all it is is a pull-up. if you don't feel like you have to pull-up on that pedal, sit down, add weight and get back up, balance on the pedals and give me a nice smooth pull up, up, up. >> small lever. there you go. >> the run is hard. it always is. it is the last part.
>> come on, nina. pace it. >> that is the new york city track. >> i am scott from green bay, wisconsin zp i'm cats from chicago, illinois. >> i'm stacia from kansas city, missouri. >> i'm nina from rome, georgia. >> i'm wau keen from water park, florida. >> i'm kendrick from chicago, illinois. >> we are the 2011 six-packs. >> wow, good luck to them. that's awesome. you can also joan our challenge by going to cnn.com training schedules and meal plans so maybe you can follow at home. maybe you will be inspired and jump into that triathlon. plus, we will have regular updates from the six-pack from now until race day. fashion icon, iman, spent part of her childhood in egypt. she reacts to the revolution in a face to face interview next. s. like nature valley.
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there. i am in love with egypt, always been in love with egypt since the day i went there for school and including my youngest daughter, with david bowie, her name is alexandria, after the city. >> so did you ever see this potential of this kind of rise of a revolution, even then in the late '60s? >> yes, because i was in egypt when nasser was around. there was always that kind of a feeling especially in the third world and volatile spaces like the middle east. there is always that you are on that edge that anything can happen at any given time. to have a revolution like this happen so peacefully, it is quite unheard of and quite brilliant.